DERICHEBOURG - Universal registration document 2019-2020

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CSR report (serving as statement of extra-financial performance) Overview of businesses and business model

As you can see in the previous graph, the share of steel from electric steel mills tends to increase from year to year, on a regular basis in countries other than China, and more recently in China. The competitiveadvantagesof steel fromelectricmills are as follows: less investment; ● increased flexibility of use, with the ability to stop and restart ● production; very clear environmental benefit (fewer greenhouse gas emissions ● per ton producedwith a ratio of 1 to 2.3) and energy benefit (less energy consumed per ton produced) advantage compared to blast furnaces, especially in countries where the nuclear share of the energymix is high;

local supply; ● ease of access to steel productionfor developingcountriesthanks to ● lower investment. However,blast furnacesgenerallyhave lower productioncosts per ton. In China, 90% of steel was produced in blast furnaces. To reduce pollution, it decidedto encouragesteel productionfrom electricmills in the coming years, by setting up its own ferrous scrap metal collection network,openingnew electric steel mills and closingold blast furnaces.

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